UBS Q1 Profit 2025

Swiss giant UBS Wednesday won the lower line expectations against the background of sharp profit in investment banking during the warning About the global trade influence that changes US tariffs as it seeks to evade a sharp decline.

Pure Profit related to shareholders reached $ 1.692 billion in the first quarter, compared to the average forecast of $ 1.359 in LSEG analysts. Group’s revenues during the site amounted to $ 12,557, compared to $ 12.99 billion analysts’ expectations.

Other highlights of the first quarter included:

• Return to material capital reached 8.5% compared to 3.9% in the fourth quarter.
• CET 1 capital coefficient, a measure of bank solvency, amounted to 14.3%, unchanged from the December quarter.

The credit stated that he had accepted 32% compared to the year in the income from the units of the world markets of its investment banking, largely due to “higher activity of customers in promotions and FX with income in all regions.” It also reached 15% of the hike for profit based on transactions in its key worldwide management unit.

Speaking in front of Carolin Roth CNBC on Wednesday, the CEO of UBS Sergio Ermoti acknowledged the “difficult setting” in the first quarter, with a number “, of course, extremely changing” first weeks in April, which backed the spikes in transaction, which sometimes exceeded the frank levels.

Critically, the lender posted $ 1,629 billion in net interest revenue (NII)-bill between income from loans and investments and payments on deposits-16% compared to last year and 11% from the fourth quarter, which refer to the further decrease in June.

“In the second quarter, we expect pure interest revenue (NII) in global rich management consistently reduced by a low unambiguous percentage, and we see that a similar decline in NII personal and corporate banking business in Swiss francs. Bids, ”UBS said.

Investors closely monitor these indicators when European banks are moving in the environment of weakening cash, especially in Switzerland, which fights strong franc and depression with interest rates up to 0.25%.

Ermaty said his “not too concerned” about the interest rate movements.

“I think we are now in a situation where it is almost like a neutral, pretty boring area,” he said. “If the tariffs rise either down from here in the Swiss francs, then we will see the potential in NII. But it is premature to talk about when and when it is materialized.”

Separately, UBS confirmed on Wednesday that he had completed $ 500 million and intended to press a $ 2.5 billion plan for the rest of 2025.

“Overall, a decent set of results, although increasing the income that is not included in the IB and GWM, and all this cannot be sustainable, while NII missed expectations again,” Citi analysts said on Wednesday after the UBS results.

This month was released as the largest bank of continental Europe in market capitalization Santander BankUBS suffered from a shares to about 10% today, with the main loss recorded after the introduction of the White House tariffs on the world trading partners on April 2.

Switzerland faces 31% debt if Washington will not be able to agree with a more conciliatory transaction by the end of the 90-day payment in early July. Comparatively, the European Union was affected by 20% in the US.

Tensions with Washington and a potential recession forecast for the world’s largest spell problems for the world for the Swiss Banking Giant and its Global Management Division for wealth management, with about half of the UBS investment assets, concentrated in a wide region of America.

“Fast and significant changes in trading tariffs, increased risk of escalation and significantly increased macroeconomic uncertainty led to a serious market volatility in the first weeks of April,” UBS said on Wednesday. “With a wide range of possible results, the economic path forward is particularly unpredictable. The prospect of higher tariffs for global trade is a significant risk to global growth and inflation, shaping the prospect of the interest rate.”

This noted the possibility of “further tendency to volatility”, since the markets remain sensitive to new events under the guidance of tariffs, noting that “prolonged uncertainty will affect the mood and make enterprises and investors delay important decisions on strategy, capital distribution and investment.”

“You look at the last 10 days or so, I think it came in a little fatigue. I think investors are now waiting in standby. The markets have calmed down … People are waiting for significant news,” said UBS ‘Ermotti. “But I expect the spikes of variability to return as positive or negative news unfolds.”

The picture of the long-term profitability of UBS remains darkened by the questions on potential new and more draconian requirements for the capital of the Swiss authorities, which questioned the status of “too big” Swiss because its Absorption of destroyed internal competitor Credit Suisse. The transaction – which at the time called the “transaction of the century” – led UBS on the way of maximum resistance against further restrictions, which, as it claims, undermine its competitiveness as well as being properly capitalized.

“UBS lobbying is visible and unmistakably. It clearly resonates in different places. But once again: the federal council cannot be intimidated by lobbying, but also should represent the interests of taxpayers,” Switzerland President Karin Keller-SRF last month, according to Google translation.

“The federal council has one purpose: that in the case of crisis, UBS, which is systematically important, is determined. It means systematically important parts of the bank can be divided into Switzerland. This must be the goal of the Federal Council and the new legislation.”

UBS is expected to interact with the Swiss Federal Council over any proposed changes in Capital in June.

Speaking about the chances of UBS on competitiveness in wider regulatory conditions, ermati said: “We are not magicians. We will not be able to be competitive and provide and be a growth engine for the financial center, but also for the economy, if the regulatory frames will not be competitive.”